Accounting

Trial Balance

A statement listing the closing balances of all ledger accounts to check that total debits equal total credits.

A trial balance lists every ledger account with its debit or credit balance at a point in time. If the books are correct, the totals of the debit and credit columns match. It is a first check on the integrity of the ledger and the starting point for preparing the profit and loss statement and balance sheet.

A trial balance that does not tally signals a posting error to investigate before finalising accounts.

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